Museums, Zoos and Parks NAICS 7121

Sep 25, 2025 - Museums Face Crisis as Public Funding Falls

• According to ArtNet, museums in the US, UK, and Europe are undergoing severe financial and political pressures as traditional public funding sources decline. In the US, federal cuts under President Trump, combined with declining tourism and endowment challenges, have left institutions facing budget shortfalls. European museums, long reliant on public support, are also experiencing unprecedented cutbacks, particularly in Germany and the UK, where austerity policies and rising costs intensify strain. Beyond funding, museums face scrutiny over political expression, governance, and relevance amid shifting philanthropy and reduced donor interest from younger generations. Some institutions are developing new models, including expanding memberships, seeking endowments, or rallying public support when targeted politically, while others explore more flexible partnerships with foundations and private backers. The overall climate is marked by anxiety, heightened competition for limited resources, and uncertainty about how museums can sustain independence, community relevance, and financial stability in a changing cultural landscape.
• Consumer mood indicators in the US declined, signaling growing economic unease. The Consumer Confidence Index fell 1.3 points in August 2025, driven primarily by younger consumers under 35, while confidence among those over 55 improved. Despite the dip, overall confidence remained consistent with recent months. Separately, the University of Michigan’s Consumer Sentiment Index dropped to 55.4 in preliminary September data, down from 58.2 in August and 21% below September 2024 levels. Inflation expectations held steady, though concerns about pricing pressures, particularly from tariffs, persist. These indices reflect consumers’ outlook on personal finances and the broader economy, serving as key predictors of future spending behavior.

• The Metropolitan Museum of Art saw attendance grow 5% in its 2025 fiscal year, reaching 5.7 million visitors, compared to 2024, with the success of two landmark exhibitions, according to Art Forum. The attendance shows a recovery post pandemic, though the museum has not yet reached its 2019 attendance level of 7 million. The museum, which also includes its Cloisters location further uptown, posted an increase in visitors from New York, Connecticut, and New Jersey, representing a 109% recovery rate since the pandemic. Its “Sargent and Paris” exhibition attracted 427,000 guests, and its Costume Institute’s "Superfine: Tailoring Black Style” brought in 291,000 visitors. Meanwhile, other museums are struggling. Attributed to attendance declines and broader financial troubles, the San Francisco Museum of Modern Art laid off 7.5% of its workforce (29 positions) in May 2025, followed by 5% staff layoffs in July at the Fine Arts Museum of San Francisco.
• The Arts, Entertainment & Recreation Industry is one of 12 industries reporting growth in August's Services ISM Report on Business. Executives in the Arts, Entertainment & Recreation industry reported increases in business activity and new orders. Additional industries reporting growth during the period were Information; Wholesale Trade; Mining; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Retail Trade; Utilities; Health Care & Social Assistance; Public Administration; and Real Estate, Rental & Leasing. Four industries reporting contraction during the period were Accommodation & Food Services; Management of Companies & Support Services; Other Services; and Construction. Overall, economic activity in the services sector grew in August for the third consecutive month, with the Services PMI registering 52%.